Correlation Between Enbridge Pref and Pine Cliff
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By analyzing existing cross correlation between Enbridge Pref 5 and Pine Cliff Energy, you can compare the effects of market volatilities on Enbridge Pref and Pine Cliff and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Enbridge Pref with a short position of Pine Cliff. Check out your portfolio center. Please also check ongoing floating volatility patterns of Enbridge Pref and Pine Cliff.
Diversification Opportunities for Enbridge Pref and Pine Cliff
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Enbridge and Pine is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Enbridge Pref 5 and Pine Cliff Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pine Cliff Energy and Enbridge Pref is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Enbridge Pref 5 are associated (or correlated) with Pine Cliff. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pine Cliff Energy has no effect on the direction of Enbridge Pref i.e., Enbridge Pref and Pine Cliff go up and down completely randomly.
Pair Corralation between Enbridge Pref and Pine Cliff
Assuming the 90 days trading horizon Enbridge Pref is expected to generate 18.09 times less return on investment than Pine Cliff. But when comparing it to its historical volatility, Enbridge Pref 5 is 7.37 times less risky than Pine Cliff. It trades about 0.08 of its potential returns per unit of risk. Pine Cliff Energy is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 61.00 in Pine Cliff Energy on September 1, 2025 and sell it today you would earn a total of 26.00 from holding Pine Cliff Energy or generate 42.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 92.19% |
| Values | Daily Returns |
Enbridge Pref 5 vs. Pine Cliff Energy
Performance |
| Timeline |
| Enbridge Pref 5 |
| Pine Cliff Energy |
Enbridge Pref and Pine Cliff Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Enbridge Pref and Pine Cliff
The main advantage of trading using opposite Enbridge Pref and Pine Cliff positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Enbridge Pref position performs unexpectedly, Pine Cliff can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Pine Cliff will offset losses from the drop in Pine Cliff's long position.| Enbridge Pref vs. American Hotel Income | Enbridge Pref vs. NeXGold Mining Corp | Enbridge Pref vs. Omineca Mining and | Enbridge Pref vs. SalesforceCom CDR |
| Pine Cliff vs. Sangoma Technologies Corp | Pine Cliff vs. Micron Technology, | Pine Cliff vs. Evertz Technologies Limited | Pine Cliff vs. Firan Technology Group |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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